BU483 Lecture Notes - Lecture 3: Life Insurance, Insurance Policy, Mutual Organization
Document Summary
Net worth chart: net worth statements are used to measure progress; so that you know that (cid:455)ou"(cid:396)e i(cid:373)p(cid:396)o(cid:448)i(cid:374)g o(cid:448)e(cid:396) ti(cid:373)e, goals need to be defined with clear and specific measurable details. If trevor dies they need money for his funeral. Probably ,000: trevor makes ,000 and kathy makes ,000, a total of ,000; which is above the average of ,000, their mortgage is ,000 which is significantly low, compared to the city of. Waterloo: people should have sufficient life insurance policies to pay off their mortgage, as it mitigates the problems with moving on, to send their two kids to college it would cost the family ,000 (,000 per child). ,000 + mortgage ,000 + emergency fund ,000 + other debt ,000: to maintain the life, they had before death the household must have 60%-80% of total income after the spousal death.
